BetMakers Raises A$12.5M at A$0.10 Per Share to Fund Growth and Acquisition
BetMakers Technology Group has raised A$12.5 million through an institutional placement and plans a further A$1 million via a Share Purchase Plan, positioning itself for strategic expansion and debt repayment.
- A$12.5 million institutional placement at A$0.10 per share
- Share Purchase Plan to raise up to A$1 million from existing shareholders
- Proceeds to repay debt, fund New Jersey Fixed Odds agreements, and support acquisition
- Potential acquisition of Las Vegas Dissemination Company (LVDC) targeted
- Placement strongly supported by institutional investors and company insiders
Capital Raise Overview
BetMakers Technology Group Ltd (ASX – BET) has announced a significant capital raise comprising a A$12.5 million institutional placement priced at A$0.10 per share, alongside a Share Purchase Plan (SPP) aimed at raising up to an additional A$1 million from existing eligible shareholders. The placement price reflects a modest discount to recent trading prices, signaling a balanced approach to attracting new capital while respecting shareholder value.
The institutional placement is fully committed by sophisticated investors, including a notable A$1 million contribution from the Company’s President, Matt Davey, underscoring strong insider confidence. The SPP, which opens mid-June, offers eligible shareholders the opportunity to participate without brokerage fees, further encouraging broad shareholder engagement.
Strategic Use of Funds
The capital raised will be deployed across several key areas. Foremost is the repayment of all outstanding debt, which will strengthen BetMakers’ balance sheet and reduce financial risk. Additionally, funds will support content and access agreements, including payments related to the New Jersey Fixed Odds market; a critical growth area for the company’s wagering technology platform.
Perhaps most intriguingly, BetMakers is positioning itself for a potential strategic acquisition of Las Vegas Dissemination Company (LVDC), the sole provider of pari-mutuel wagering services in Nevada. This move could significantly expand BetMakers’ footprint in the US market, complementing its existing operations and enhancing its competitive positioning.
Market and Investor Implications
CEO Jake Henson expressed satisfaction with the strong support from both existing and new institutional investors, highlighting that the capital raise equips BetMakers to pursue both organic growth and strategic acquisitions. The extinguishment of debt and improved working capital position the company to execute its growth strategy with greater financial flexibility.
While the placement does not require shareholder approval, the issuance of shares to Tekkorp Holdings LLC, a related party, will be subject to such approval, reflecting governance best practices. The SPP’s non-underwritten nature introduces some uncertainty regarding the final amount raised, but the company retains discretion to manage any shortfall.
Looking Ahead
With settlement of the placement scheduled for mid-June and the SPP offer period extending into early July, BetMakers is set to bolster its capital base in the coming months. Investors will be watching closely for updates on the LVDC acquisition and how the company leverages its strengthened financial position to capture growth opportunities in the competitive gaming technology sector.
Bottom Line?
BetMakers’ capital raise clears the path for debt-free growth and a strategic US acquisition, setting the stage for its next expansion phase.
Questions in the middle?
- Will the Share Purchase Plan fully subscribe to the targeted A$1 million?
- What are the detailed terms and timeline for the potential LVDC acquisition?
- How will the repayment of debt and new capital impact BetMakers’ profitability and cash flow?